When anchors call the shots: what Amazon and the European Medicines Agency have in common

Many ‘anchors’ – institutions that have a long-term, stabilising presence in a community, and coordinate economic and social activity – are established in an area because of the very characteristics of that area. Think hospitals needing to serve a growing population, or a university near colleges, industry and other intellectual activity. Yet a new breed of anchor institutions have arrived: born unrooted, they float high and unencumbered by place until they are enticed to a city by an offer they can’t refuse.

Two recent examples showcase this. First, Amazon is inviting metropolitan areas in the US to bid to host the company’s second headquarters. The prize?

Amazon will hire as many as fifty thousand (50,000) new full-time employees with an average annual total compensation exceeding one hundred thousand dollars ($100,000) over the next ten to fifteen years, following commencement of operations. The Project is expected to have over $5 billion in capital expenditures.

Areas are expected to meet strict criteria, including a highly educated workforce and a ‘strong university system’. The Centre for Cities cover the ins and outs of Amazon’s invitation nicely, concluding that ‘firms like Amazon need cities as much as cities need firms like Amazon’. But it appears that Amazon have the upper hand.

Second, the UK’s vote for Brexit has effectively booted the European Medicines Agency (EMA) out of London. The EMA’s Canary Wharf headquarters is home to 890 staff and 36,000 annual visitors. EU countries have been bidding to host the EMA, who have also issued a set of criteria for interested parties. Yet, in this case, existing staff have been particularly influential. Reuters reports that

A staff survey last week found that between 19 and 94 percent of employees were likely to leave after the move, depending on which location was chosen. Picking Amsterdam, Barcelona, Vienna, Milan or Copenhagen as the new headquarters would be the best option for retaining staff, the survey found.

In both cases, the more connected, more open, more liveable cities with a skilled, educated population are in a far stronger position to attract a floating anchor institution. And as the most successful cities (and the principles of agglomeration) have shown, once you have one anchor it’s much easier to attract further anchors.

How does city reputation affect city performance?

According to researchers studying 76 Spanish cities:

we find that good city reputation is positively associated with economic activities and negatively with unemployment, but not related to net migration.

With the exception of city reputation having little association with net migration, these findings aren’t particularly surprising; indeed, the article is perhaps more notable as a sign of the emerging focus on ‘city reputation’ as a field of study. Full article in Regional Studies available here.

Incidentally, I was in Seville last week at EAIE, Europe’s largest higher education conference, presenting research on cities, universities and internationalisation, including city marketing and branding activities. See a Times Higher Education piece briefly covering the session here (towards the end).

The Regional Studies authors propose several areas of future investigation, including the dynamics of human capital (‘city reputation may attract human capital, which in turn favours city performance’). They would do well to also consider the effect of university performance and reputation on the city.

Photo by Johan Mouchet on Unsplash

The future of European internationalisation

The future of internationalisation is in the hands of universities and cities working together

Internationalisation is much more nuanced than international student numbers or foreign direct investment. It is a long-term game where creating an attractive, open, vibrant place to live and work is more important than fluctuations in visitor numbers; where the winners are formerly marginalised communities as well as internationally connected businesses.

BCreportDrawing on interviews I conducted with 25 senior university and city officials in four European cities, a new report funded by the British Council looks in detail at models of collaboration. Mutual influence? Universities, cities and the future of internationalisation is available to read online.

Researching and writing this report was great fun, and I hope you enjoy reading it.
 

See also: this research was presented at Going Global 2017 in London

 

 

No ordinary think tank

Improving economic security is a neglected policy goal. A new initiative in Nottingham seeks to address this

Guest post by Jonathan Schifferes, Associate Director – Public Services and Communities at the RSA

At the dawn of a new parliament – one which will be gripped by negotiating Britain’s international relations while also negotiating new alliances in the House of Commons – the UK gained another think tank last week.

Some political insiders explain that this kind of parliament is likely to sideline the philosophers and reformers with a policy vision for government. Instead the deal-makers, the tactical masters, and the charismatic will be in demand.

In this context, what contribution can a think tank realistically make in the coming year? At the RSA we have been working over the last two years to support the development of a new kind of think tank: one that is focused on the issues of a specific place, within an ‘anchor institution’ that itself shapes the place it is in.

Despite over a decade of devolution and localism in UK politics, there are remarkably few1 civil society organisations that have been established with a place as their focus. We hear frequent complaints of policy silos and politics centred on Westminster, yet most think tanks organise themselves around a policy issue and locate themselves in Westminster.

To generate a richer debate on the social and economic development of the UK’s towns and cities, we need to bridge the gap between the sidelined political philosophy and the daily grind of machine politics. For several years, the RSA has recognised that universities have enormous potential to drive social and economic outcomes in the places they exist – echoing calls for a new breed of ‘civic university’.

RSA Chief Executive Matthew Taylor gave the keynote speech last week, launching Nottingham Civic Exchange, based at Nottingham Trent University (NTU). In partnership with the university leadership, the RSA has helped shape this civic think tank – bringing together many of our Fellows across the region and pooling our research capabilities. NTU views Nottingham Civic Exchange as a key part of delivering its overall strategy.

Going to the heart of what will matter in the lives of one million people across Nottingham and Nottinghamshire, the first programme of Nottingham Civic Exchange is called ‘Out of the Ordinary’. Today, NCE publishes an analysis of ‘ordinary working families’ in the city-region. Rather than simply using economic analysis to fuel Westminster soundbites, and packaging up a new demographic for electoral fodder, this study uncovers important data on Ordinary Working Families in a specific place.

Six million people define themselves as ‘just about managing’

While the struggles of the ‘squeezed middle’, ‘alarm clock Britain’ and households on low and moderate incomes have been discussed for years, what is most remarkable is that nationwide, an estimated six million people define themselves as ‘just about managing’, despite being in households with income above the national median.

In Nottingham, jobs in the caring and leisure industries are more common sources of employment compared to the UK average, and the prevailing low pay of these sectors – where women hold the majority of roles – challenges household finances. The RSA’s Inclusive Growth Commission made the case for place-based industrial strategies, which will be even more crucial as the economic adjustment of leaving the EU approaches, and devolution seems likely to stall. NTU has a particular accountability to families who are ‘just about managing’ – 21% of their 2015 full time undergraduate intake is estimated to come from this background.

Through the summer, the RSA’s ongoing work with NCE will bring a further focus on economic insecurity. We think addressing economic security is a neglected policy goal, which will help bring in to focus the following:

  • The breakdown of traditional class markers. University education has expanded for the recent generation, occupational roles in the workplace are undergoing accelerating change, and home ownership is declining among adults in their 30s establishing families. The financial security previously afforded by a university degree and a white-collar job is eroding, and partly as a consequence owner-occupation is less easily accessible as a form of insurance to protect against unstable or falling incomes. As post-election analysis has suggested, ‘age is the new class’ when it comes to predicting how people align to support political parties.
  • The importance of households as a unit of analysis. Most labour market statistics, for example, look at workers as individuals. Most workers live in households and financial decisions are made in that context: 43% of people have a joint account with their partner. Families and their homes transmit wealth through the economy at a scale which dwarfs the government’s own system of tax-funded pensions. Differences in the experience of insecurity between generations remain relatively under-explored.
  • The importance of looking across the life-course rather than using snapshot data pictures. Looking at longitudinal data across Europe, the lower middle class has the highest rates of transitory poverty; moving in and out of poverty defines their economic status.
  • The economic, fiscal, social and health impacts of subjective (‘felt’) insecurity are just as, if not more potent than, the effects of objective insecurity and material deprivation. This doesn’t mean that addressing material deprivation and poverty should be neglected as policy goals. But it does mean recognising that progressing in the modern workplace brings anxieties and volatility, not necessarily the secure affluence that many crave.
  • Longer-term, a defining characteristic of our era is declining confidence that the future will be better than the past. A survey in 2015 found 25% of UK respondents thought their children would be better off than them; 68% thought they would be worse off.

Nottingham housing

My hypothesis is that in a rich country like the UK, being secure in your economic status matters alongside your absolute affluence. And overall economic inequality matters in part because it exacerbates the experience and perception of insecurity for all in society: greater inequality means there is more to gain and more to lose from a change in their position on the income spectrum.

Beyond the day-to-day parliamentary dealmaking, the election aftermath may prove be one in which austerity plans are dialled down, labour market considerations dominate Brexit talks and vote-winning policies for ‘ordinary working families’ are reconsidered. At the very least, facing a broad range of possible futures makes it a good time to be a nimble think tank.

We need more people to be more involved in policymaking

The next phase of work for Nottingham Civic Exchange will look in more detail at the lives of Ordinary Working Families through research, policy development and working with local communities to identify important issues and come up with recommendations for making changes which have real life impact. They will also link students and staff at the university with wider communities through scholarships, internships, and research projects. In line with the RSA’s wider programme on revitalising economic democracy, we need more people to be more involved in policymaking – in this parliament and beyond – if government and society is to successfully address growing economic insecurity for growing numbers of people. Through partnering with a university committed to improving the city and region it calls home, Nottingham Civic Exchange will tighten the links between policy, action and legitimacy in addressing economic insecurity.

Jonathan is Associate Director – Public Services and Communities at the RSA (Royal Society for the encouragement of Arts, Manufactures and Commerce). Read his posts on the RSA website here, or follow him on Twitter here.

This post originally appeared on the RSA blog.

Photos of Nottingham: top jess_k_kent1 on Flickr, middle Mr Thinktank on Flickr.


  1. We are aware of: Newcastle City Futures, Centre for London, Southern Policy Centre, Manchester New Economy. Let us know in the comments of others that we have missed. 

Internationalisation of universities and cities session at Going Global 2017

New research looks at the internationalisation strategies of cities and universities, and how they intersect

I was fortunate to join Professor Edward Peck, Vice-Chancellor of Nottingham Trent University, and Mihnea Costiou, Rector of Politehnica University of Bucharest, as part of a panel chaired by Bianka Stege, Director of Education and Society (EU Region), British Council at last week’s Going Global conference in London.

The panel focused on the internationalisation of cities, and I presented new research funded by the British Council. You can see the slides and listen to the audio here. A summary of the research is provided as part of the highlights of day three here, and Times Higher Education covered the research here.

The full report is embargoed until the UK general election, but will be published after June 8th.

Edit: the report is now available.

…and then they all ran into the sea

Without new talent, cities will die

Paul Krugman, Nobel prize winning economist and long-time columnist for The New York Times, is also one of the fathers of New Economic Geography. NEG is described as ‘One Economic Theory to Explain Everything’ by a Bloomberg columnist in a handy explainer.

Anyway, I was reading a transcript of a conversation between Krugman and Masahisa Fujita (another parent of NEG) in the journal Papers in Regional Science. Just before the end there’s this helpful reminder of why protectionism and closed borders is so bad for cities:

…agglomeration of a large number of heterogeneous people (essentially, professional workers with heterogeneous skills/knowledge) in a city or industrial district can naturally be expected to contribute to the diffusion, generation/innovation, and accumulation of knowledge, and hence to economic growth. This would certainly be true in the short-run. But this is not assured in the long-run unless there is a sufficient infusion of new blood. (pp.161-162)

Economic growth relies upon new people who help to develop new ideas – clearly endangered by the likes of Brexit. On a lighter note, the transcript (recorded in Puerto Rico) ends as follows:

K: Of course, I agree with you. But, …
I: Hey Paul! Why are standing up? Where are you going?
K: Talking under the Caribbean sun for over two hours has literally fuelled my now burning desire to jump into that ocean.
F: Yeah, all I can think of now is to savour this Caribbean moment with a quick dip and a large beer under the cool shade.
K and F (in unison): Hasta la vista!
Sounds of two big splashes 
I: … Hey, Paul, Masa! Wait for me!
Another big splash is heard, followed by hearty laughter

How to create print-quality maps using open source software

Using QGIS and Natural Earth Data to make bespoke maps

I’ve always been a fan of maps, from an illustrated picture atlas of the world that I used to pore over as a child, to a battered USSR-era Cyrillic map of Somalia that I bought from an antique store in Estonia. I also enjoy reading about maps – from the excellent exposition of global politics via ten maps in Prisoners of Geography to articles about the creation of Google Maps. It turns out creating maps is also quite fun.

In the past I have used online tools such as Stamen maps, using OpenStreetMap data, or the Google Maps-based Snazzy Maps. But for bespoke print-quality map creation you need to turn to GIS software.

Introducing QGIS and Natural Earth Data

I was inspired to try QGIS, an open source programme available to download here, after reading an interview with Steven Bernard, Interactive Design Editor at the Financial Times, and seeing examples of the finished maps he had created.

Steven has an excellent YouTube walkthrough guide that I recommend following from start to finish. It takes you through downloading QGIS and installing Natural Earth data to advanced styling and designing animated markers.

You build upon a blank map of the world:

Map 01

Which quickly grows in complexity:

Map 02

I needed to create a map showing four specific European cities, and so the map needed refining and tidying. Here’s the final map in QGIS:

Which can then be exported at print resolution, or (in this case) exported as a SVG file for editing in a vector graphics programme. This allows the labels to be adjusted and other visual tweaks made.

QGIS is a hugely powerful program offering a great deal of customisation. The user manual is 420 pages and perhaps best works as a backup reference, with the YouTube walkthrough offering an accessible way to jump in and create your first map.

More people needed

Issues facing universities are often shared by the city they are in

Today’s Economist has an article on the University of Oxford’s property development plans – in particular, building new housing.

Homes in Oxford are among the least affordable in Britain. The housing pinch is keenly felt by postdoctoral researchers, 4,500 of whom work in Oxford on short-term contracts with unspectacular pay. The university realised that these academic serfs, who form the backbone of its intellectual project, were spending huge amounts of their income on rent and that if it wanted to remain competitive it would have to find them more places to live.

Many UK cities outside of London have a shortage of skilled workers (and London too has skills shortages in particular areas). Cities and universities are hungry for more people. Infrastructural weaknesses – from dodgy travel connections to a lack of quality and affordable housing – can act as bottlenecks to future growth and obstacles to attracting talented people. The issues facing universities are often shared by the city they are in.

Many European cities have ambitious growth plans. Some want to revitalise particular districts, others recognise they need another 200,000 people to become truly competitive. Where countries have targets in place to, for example, double the number of international students, cities and universities need to work together to accommodate new arrivals. I’ll be presenting new research on how universities and cities are working together on internationalisation, including addressing shared infrastructure challenges, at Going Global in May this year in London.

Political trends vs. universities and regions

Three recent perspectives foresee important roles for universities and cities

How might universities and city regions respond to the rifts in the population and apparent rise of populism exposed by Trump and Brexit? From the cacophony of reporting on the consequences of the political events of 2016, three recent perspectives caught my eye. All emphasise the need to better understand the roles of regions and universities.

Cities and bottom-up innovation

Bruce Katz calls for cities and metropolitan areas to power the United States forward under a Trump administration:

A wide range of policies relating to taxes, trade, the environment, immigration, infrastructure, and health care seem likely to be upended. But some things will stay the same—metropolitan areas will continue to drive our national economy forward, and they will remain the geographies most capable of bridging the partisan divisions that plague our national politics. In both of these respects, local leadership will now be more important than ever…

Over the next several years, the hard business of investing in the future and uniting the nation will not be conducted in Washington. Rather it will occur in our localities, where leaders and residents in our cities, suburbs, exurbs, and rural areas will work together to find common ground and purpose.

Universities as the main links between nations

Philip Altbach and Hans de Wit look to history:

Will we see again a de-Europeanization and nationalization of higher education in Europe emerging, in the light of greater criticism of European integration, the growth of nationalist populist movements, and tensions between Russia and western Europe and the United States?

Academic cooperation and exchange have been in many cases, including during the Cold War, the main relations between nations: they continued to take place and even were stimulated so as to pave the way for further contacts. We have to learn from these lessons. International higher education is substantially different from earlier historical periods, as well as from the Cold War. Its scope is also different, with increasing political and academic power influences from other regions of the world, especially Asia. But, even though we should be realistic that international cooperation and exchange are not guarantees for peace and mutual understanding, they continue to be essential mechanisms for keeping communication open and dialogue active.

A resurgence of regional enterprise

An editorial in Regional Studies provides an unusually speculative forecast for an academic journal (the piece is worth reading in full):

The implications for cities and regions of the fracturing of the international order are highly uncertain. Resurgent popular nationalism would have profound consequences for all territories by inhibiting foreign direct investment (FDI), external trade and access to scarce skills, and forcing more reliance on local capabilities and domestic production. Some argue that a reversal of globalization would dampen economic progress and suppress opportunities for the world’s poorest places and populations. Alternatively, patriotic impulses that challenge ossified structures and global cartels could provoke a resurgence of regional enterprise and organic growth. Well-conceived policy reforms that disrupt business inertia could engender another Schumpeterian wave of innovation and creativity based on smaller-scale production. Dynamic regional multipliers might be spurred by efforts to localize resource flows so as to secure the supply of food and scarce materials, to cut energy consumption and to regenerate degraded ecosystems. Enhanced democratic constraints on business short-termism may also curb financial speculation and encourage longer-term investment in the real economy.

Furthermore, international disengagement might serve to bolster local and regional identities and renew a sense of place and belonging. This could elevate the obligations on civic leaders and rebuild confidence in the role of city and regional institutions. Against this, heightened perceptions of fear and insecurity could foster a ‘new tribalism’ through separatist movements, ethnic tensions, insurgent splinter groups and other inward-looking forces that escalate conflict and pull countries and regions apart. Much depends on whether democratic institutions are capable of responding to the genuine concerns of citizens and can meld different interests and values together in pursuit of shared agendas and collective solutions. Meanwhile, if the Paris climate deal leads to restrictions on fossil fuel extraction in favour of clean energy, this could make many regions reliant on oil, gas and coal reserves vulnerable to stranded assets and obsolete power generation systems. The case for regional studies is accentuated rather than diminished in all these scenarios. Systematic analyses of how different territories are adapting to the unravelling of globalization and introducing more holistic and resilient strategies to cope with the turbulence are urgently needed.

In other news, I have written a short piece for KPMG on a new era of university-city partnerships. A longer piece will follow later this year.

On mayors

A new batch of elected mayors are arriving in England next year. They will have an important ‘soft power’ role, acting as a figurehead for the region, developing an international presence, marketing the area, and influencing government policy. They will also be responsible for strategic decisions over areas devolved as part of their individual devolution deal. Universities should make it their business to work with the mayoral candidates in their region.

More on the Universities UK blog, and accompanying factsheet.